Prize draw competitions (PDCs) represent a booming commercial opportunity. Whether used to increase consumer engagement with an existing brand or as standalone business models, PDCs offer entrants the chance to win high-value prizes, often with a charitable element. The market has seen huge growth in recent years and the trend shows no sign of slowing.
However, with opportunity comes increasing compliance risk. The regulatory landscape is evolving rapidly, and businesses must stay compliant across multiple areas of law.
PDCs sit at the intersection of many of our market-leading practice areas – from Betting & Gaming, Consumer, and Advertising; through to Tax, Corporate, Data Protection, and Interactive Entertainment. Our expert lawyers are at the forefront of the discussions, enabling businesses – from early-stage operators to global brands – to offer PDCs that are engaging, innovative, and compliant with fast-moving regulation.
We advise businesses on:
- Assessing the legality of paid-for and free-to-enter PDC routes, including postal, online and social media entry mechanics.
- Navigating consumer protection laws and advertising rules for PDCs.
- Drafting, reviewing and localising PDCs terms and conditions, privacy notices and winner publicity releases.
- Creating practical “playbooks” and compliance checklists for in-house teams running PDCs.
- Advising on in-game PDCs and user-generated content issues.
- Managing tax, VAT and duty questions linked to PDC funding and promotional revenues.
- Advising on data protection issues, from winner verification to ongoing marketing consent, and handling media queries around prize publicity.
- Providing regulatory advice and horizon-scanning, including navigating the new Digital Markets Competition and Consumers Act 2024 (DMCCA) enforcement powers and proposed voluntary code.
- Supporting on multi-territory offerings using our network of trusted local advisors.
- Dealing with the regulators including the Gambling Commission, CMA and ASA.
- Handling consumer complaints and litigation.